18-1 CHAPTER INTEGRATED MARKETING COMMUNICATIONS 18 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.

18-1

CHAPTER

INTEGRATED MARKETING COMMUNICATIONS

18

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

18-2

L E A R N I N G O B J E C T I V E S

Identify the components of the communication process.

Explain the four steps in the AIDA model.

Describe the various integrative communication channels.

Explain the various ways used to allocate the integrated marketing communications (IMC) budget.

Identify marketing metrics used to measure IMC success.

Integrated Marketing Communications

LO1

LO2

LO3

LO4

LO5

18-3

Coca-Cola

Jochen Tack/Alamy

18-4

Integrated Marketing Communications

Custom

ers

Results Comm

unication

channel

http://www.youtube.com/watch?v=XNic4wf8AYg

18-5

Communicating with Consumers: The Communication Process

Noise from the environment

Feedback

Receiver(Consumer)

decodes message

Sender(Firm)

Transmitterencodesmessage

Communicationschannel(Media)

18-6

How Consumers Perceive Communication

Receivers decode messages differently

Senders adjust messages according to the medium and receivers’ traits

©Stockdisc/Getty Images

18-7

Decoding the Message

How does the advertiser help the receiver decode this as a breakfast food

Courtesy HJ Heinz Company

18-8

The AIDA Model

Awareness

Interest

Desire

Action

Think

Feel

Do

18-9

AIDA Model

Where is this ad in the AIDA model?

©2008 KCWW Reprinted with Permission

18-10

Awareness

Senders first must gain the attention

A multichannel approach increases the likelihood the message will be received C

ourt

esy

Pe

apo

d

18-11

Interest

After awareness comes persuasion

The customer must want to further investigate the product/service

©2010 Dell Inc All Rights Reserved

©2010 Dell Inc All Rights Reserved

18-12

Desire

I like it I want it

blue jean images/Getty Images

18-13

Action

Purchase is just one type of action… what other actions can IMC ask consumers to take?

©BananaStock/PunchStock

18-14

The Lagged Effect

Advertising does not always have an immediate impact

Multiple exposures are often necessary

It is difficult to determine which exposure led to purchase

©image100/PunchStock

18-15

CHECK YOURSELF

1. What are the different steps in the communication process?

2. What is the AIDA model?

18-16

Elements of an Integrated Marketing Communication Strategy

• Personal selling

• Sales promotions (e.g., contests)

• Direct marketing (e.g., telemarketing)

• Advertising

• Sales promotions (e.g., coupons)

• Public relations

• Direct marketing (e.g., catalogs)

• Direct marketing (e.g., mobile marketing)

• Online marketing (e.g., blogs, social media

• Direct marketing (e.g., e-mail marketing)

Interactive

Passive

On

line

Off

lin

e

18-17

Advertising

Most visible element of IMC

Extremely effective at creating awareness and generating interest

Cou

rte

sy N

atio

na

l Flu

id M

ilk P

roce

sso

r P

rom

otio

n B

oa

rd;

Age

ncy

: Lo

we

Wor

ldw

ide

, In

c.

Terry Tate Office Linebacker

18-18

Public Relations (PR)

“Free” media attention

Importance of PR has grown as cost of other media has increased

Consumers becoming more skeptical about marketing, PR becoming more important

Courtesy Citirx Online, LLC

18-19

Sales Promotions

Can be aimed at both end user consumers or channel members

Used in conjunction with other forms of IMC

Can be used for both short-term and long-term objectives

Retailmenot.comCourtesy Dole Food Company, Inc.

18-20

Personal Selling

Some products require the help of a salesperson

More expensive than other forms of promotion

Salespeople can add significant value, which makes the expense worth it

Royalty-Free/CORBIS

18-21

Direct Marketing

Growing element of IMC

Includes e-mail and m-commerce

Good for multicultural groups

Database technology improves

Cou

rte

sy G

loba

l Sp

ec,

Inc

18-22

Adidas

Anthony Saint James/Getty Images

18-23

Online Marketing

Websites

Blogs

Social Media

McG

raw

-Hill

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mp

an

ies,

In

c. M

ark

er

Die

rke

r, p

ho

togr

ap

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.

18-24

Websites

What websites do you visit all the time?

Why?

18-25

Blogs

What can Southwest learn from their blog?

Courtesy Southwest Airlines

18-26

Social Media

Advantages to firms?

Challenges?

18-27

CHECK YOURSELF

1. What are the different elements of an IMC program?

18-28

Planning for and Measuring IMC Success

Understand the outcome they hope to achieve

Short-term or long-term

Should be explicitly defined and measured

Lawrence Lawry/Getty Images

18-29

Setting and Allocating the IMC Budget

Objective-and-task method

Rule-of-thumb methods

©B

ran

d X

Pic

ture

s/P

un

chS

tock

18-30

Rule of Thumb Methods

18-31

Measuring Success Using Marketing Metrics

Frequency

Reach

Gross rating points

Web Tracking

Digital Vision/Getty Images

18-32

Search Engine Marketing

Clicks

Impressions

Click through rate

Return on investment (ROI)

Transit, an upscale sneaker store in New York City modeled after vintage New York City subway trains.

18-33

TransitClick through results

What does the data tell you?

18-34

Transit IMC goals and results

18-35

Swiped ID Theft in America

18-36

CHECK YOURSELF

1. Why is the objective-and-task method of setting an IMC budget better than the rule-of-thumb methods?

2. How do firms use GRP to evaluate the effectiveness of traditional media?

3. How would a firm evaluate the effectiveness of its Google advertising?